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I suspect they are simply trying to discover what is actually happening and this can take time. I would expect some comment before their next scheduled news flow - in March? Water cuts can change rapidly and any comment will need careful data gathering.
I am certainly looking to pick up some more shares when things stabalize.
What maybe happening is that the 7z well is still closed in or just opened or about to be.......so there can be no further factual comment on water until it has been flowing awhile, a few weeks anyway!? So the Dec rns comment re-confidence it is perched water still stands until there is factual evidence to say otherwise!?
With this oil price. Not too cost effective.
problem is most still believes basement fracking and are panicking that the oil is going to run out or there will be too much water mixed with the oil... there is little confidence in the hurricane model. I think by end of the year if all stays positive and they keep producing this will hit back to 60p.. or maybe the big boys are on purpose hammering it down so they can buy back cheap.. if the fundamentals are solid then what is the panic ? then just a matter of time when it will move back up..
You rated the shares a 'bargain' but after they have fallen by 45 percent and production has been increased by about 50 percent, you rate them only a 'hold,' until the BOD have issued a 'clarification.'
They already have!
Andy - Surely that's the point though - if as you say the two don't tally and the sp indicates an issue then under the rules of disclose HUR have to disclose. The demise of the sp should surely force their hands under the rules
If there is nothing wrong just false rumours then they have nothing to disclose. The fact that this has been going on for weeks and HUR have done precisely that then the BoD are either acting like bandits or there really has been no change to what was indicated in the RNS reference the performance of the EPS.
I would rate them now as a hold. Without clarification as to the issues at hand, we cannot really make any meaningful judgement. The story changes and investors must change with it. My personal concern is that the RNS water cut % as recently described, does not tally with the OGA figures which appear to be considerably higher.
Regards
This is now hurting stupid share .
acrossthesea, great points and you are right, there is a difference between people using spread betting accounts and LTH's.
LTH's are here to make noise instead of looking for other opportunities, traders go where the smart money go, hedge funds! GLA
https://shorttracker.co.uk/company/GB00B580MF54/
You are missing that market manipulation is an on going game. Companies with great assets and future growth potential are targeted, a concerted effort is made to portray the company in a bad light, shares are shorted on the way down. Many traders are leveraged and have stops in place. The price comes down to a fraction of the asset value the big players pile in. Two recent examples Ithica Energy driven down to 20p in January 2016 bought out for 115p Feb 2017. Premier oil taken down to 19p January 2016 on the reverse take over of the EON assets now trading at 107p. The market is a game, understand the rules, value dictates in the end and HUR has a huge amount of oil, the numbers will win in the end.
I note, Andy, that on 5 October you described HUR as a 'bargain share.'
The price was 40.58p then.
With production being increased by about 50 percent, starting this month, and the share price having fallen by 45 percent in the meantime, how would you rate them now?
Although I am positive on HUR, if you look at the OGA output chart, they were producing 2000BOE water per day (in October - and rising) on an oil production of about 14kBOE/day. Assuming this is all coming from the one well thats quite a percentage water cut. From the way the share is going, it looks like some think one of the wells is not going to last. However, from recent RNS the other well is producing no water and this should be a comfort. From the OGA chart the water output is rising quite sharply. This will need to be addressed shortly.
Thanks, S7ein.
We'll let the experts know that their valuations of HUR at 100p + per share are out by a factor of 5+.
We've seen their detailed calculations - and their valuations are conservative.
I think your post is complete nonsense.
You are trying to apply a value of tomorrow, today.
What people here constantly forget is that they are applying valuations for things that haven't even happened yet, and although a company can be valued from its future revenues pretty easily, its very difficult to apply it to a smaller company like Hurricane where they continue to post negative numbers.
For this reason I believe this company, based on estimated 2019/2020 EBITDA and EBIT market multiples, to be between 16-25p (Based on industry averages for 2019)
If the multiples are applied against averages from recent acquisitions, the numbers are broadly similar.
Whether you like it or not Hurricane, at this time, is only beginning to demonstrate its value based on actual numbers to date. Unfortunately that's a downward value.
Yyami
Unless I am misunderstanding I think you are confusing gross income with net income - does cost to pull out o FB you know! But essentially your argument is valid
Market capitalisation: £454 million
Cash: £150 million approx
Estimated income in 2020: £300 million approx
£150 million + £300 million = £450 million
Seems like our assets are worth nothing at all, the SP is crazy!